Improvement Research On The Internal Governance Mechanism Of X Technology Co.Ltd

In the nearly four decades of Reform and Opening-up,Southern Min as one of the coastal economic open areas of China has witnessed the growing of its enterprises on the basis of the first mover advantage of institutional mechanism: scales from small to large,modes from individual combats to group battle,systems from family-run management gradually to modern enterprise management.The forming of an economic developing pattern with private family enterprises as main body in Southern Min plays an extraordinary important role in the economic development of Fujian and even of whole China.However,with the intensifying of market competition and the rapid development of economy,the situation of family enterprises of Southern Min leading the development of private economy national wide has been broken.The private enterprises of Southern Min are falling behind enterprises of other areas of vigorous private economy not only in scale,but also in fields of new economy and new technology,leading to a lack of competitiveness.Based on the corporate governance theory of family enterprises and previous research,this thesis takes the internal governance mechanism of family enterprises of Southern Min as the research object and studies the internal governance of X Technology Co.Ltd,a typical private family enterprise of Southern Min.This thesis systematically studies the current governance situation,governance theory and mode of X Technology Co.Ltd,analyzes the existing problems and their realistic reasons and proposed feasible solutions.Many family enterprises of Southern Min have the same problem with X Technology Co.Ltd.on the company's organization that the chairman of the board and the president is the same person.It means the interests of shareholders coincide with the management team,which will cause wrong investment decisions easily.According to the principal-agent theory,this thesis puts forward the suggestion that X Technology Co.Ltd.should choose other person to the position of president.Perfecting the internal system of the company plays an important role in building the governance mechanism,which can effectively improve the company's all-round governance so as to ultimately safeguard the interests of all aspects of the company.Establishing a set of perfect HR strategic system and strengthening the goal management can effectively reduce the agency cost and agency risk of the company and promote corporate governance.The two problems that corporate governance needs to solve are constraint and incentive.Constraint is of course very important,but incentive mechanism also plays a very crucial role in corporate governance.This thesis mainly proposes X Technology Co.Ltd.from medium and long-term incentive and corporate culture incentive,to promote the effective internal governance of the company.According to the actual operation of X Technology Co.Ltd.and combined with the existing research theory,this thesis puts forward an effective scheme for the internal governance of private family enterprises of Southern Min systematically,which has practical and guiding significance for the healthy development of family enterprises of Southern Min.